Business

Sime Darby Plantation says pursuit to lift US customs ban almost complete

Palm oil producer appoints independent ethical trade consultant to perform full-scale assessment across all Malaysian facilities

Updated 2 years ago · Published on 28 Jan 2022 10:37PM

Sime Darby Plantation Bhd has called the US Customs and Border Protection's ban 'hugely disappointing', but is striving to prove it has internal systems and controls in place to support workers and maintain their well-being. – Bernama pic, January 28, 2022

KUALA LUMPUR – Sime Darby Plantation Bhd (SDP) is close to completing work in pursuit of lifting a United States Customs and Border Protection (CBP) ban on its palm oil products.

On December 16, 2020, the CBP issued a Withhold Release Order (WRO) to detain SDP’s palm oil and palm oil products at US ports of entry.

The reason behind the detention is that the CBP determined the palm oil and palm oil products were produced using convicts, forced or indentured labour.

According to a press statement by SDP, the company has already taken up work to cooperate fully with the USCBP.

In response to the allegations, SDP appointed an independent ethical trade consultant to perform a full-scale, independent assessment across all its Malaysian facilities.

However, the process has been experiencing delays due to Covid-19-related lockdowns.

Nevertheless, SDP assures that the work is close to completion.

SDP also said the CBP’s findings are “hugely disappointing”, adding that its on-site work done by the independent consultant will demonstrate that the company has internal controls and systems in place to support workers and maintain their well-being.

“Since the WRO was issued on December 16, 2020, SDP has cooperated fully with the CBP.

“In response to these allegations, SDP has appointed an independent ethical trade consultancy to undertake a full-scale, independent assessment over facilities in Malaysia,” SDP group managing director Mohamad Helmy Othman Basha said in a press statement.

On June 15 last year, CBP public affairs specialist Nate Peeters told The Vibes that the department was alerted to information “reasonably indicating the presence of all 11 International Labour Organisation (ILO) indicators of forced labour” with regard to the production process at several Malaysian companies.

CBP, which comes under the US Homeland Security Department, issues WROs when it has information that goods are made either wholly or in part by forced labour, and would then subject the items to detention at American ports of entry. – The Vibes, January 28, 2022